AGM Statement

16 May 2007 15:00

Falkland Oil and Gas Limited16 May 2007 Wednesday 16 May 2007 Falkland Oil and Gas Limited("FOGL" or "the Company") Annual General Meeting The following statement will be made by FOGL's Chairman, Richard Liddell, at theCompany's Annual General Meeting to be held today: "The last nine months have seen continued progress as we enter what we see as acrucial year in the Company's development as we continue to pursue ouraggressive exploration programme in the South Atlantic. Two surveys are currently underway: The 2D infill seismic programme andControlled Source Electro-Magnetic ("CSEM") survey. These started respectivelyin December last year and February this year and both are progressingsatisfactorily. To date approximately 8,500 kilometres of 2D seismic have beenacquired. The survey is expected to be completed in June 2007. Good progress hasalso been made with the CSEM survey, with four out of the planned eight linesacquired to date. The second phase of the survey will commence shortly.Interpretation of the CSEM data is expected to be completed in the second halfof 2007. These surveys are designed specifically to reduce the exploration risk andidentify the best prospects to target for the Company's future drillingcampaign. The Company's cash reserves remain sufficient to carry out the currentprogramme. The strategy and focus for the next 12 months remain unchanged. We continue tolook to introduce suitable farm-in partners whilst at the same time evaluatingthe rig options. This is in combination with our operations programme which willenable us to select the best prospects for drilling. It is against this robustprogramme that a number of different scenarios and interesting opportunitiescould develop for the Company during the next year. The Board believes that thecurrent exploration programme will lead to an exciting drilling programme thatcould see the development of a new petroleum province in the South Atlantic." Enquiries: FOGL 020 7563 1260 Richard Liddell, Chairman Tim Bushell, Chief Executive KBC Peel Hunt (Nominated Adviser) 020 7418 8900 Jonathan Marren / Matt Goode College Hill 020 7457 2020 Nick Elwes / Paddy Blewer www.fogl.com This information is provided by RNS The company news service from the London Stock Exchange